FAQ’s

All you’re questions answered

General FAQs

What is CapitalPitch?

CapitalPitch propels founders so they can make an impact on the world. We make startups’ life easier by enabling them to manage their entire raise from investor sourcing through to closing, which derisks and destresses the capital raising process. We do this via our all-in-one capital raising software .

We also operate a venture capital fund that acts as the lead investor in Seed & Series A startups in Australia, so as professional investors we know what startups should provide.

Who is behind CapitalPitch?

CapitalPitch was founded by serial founders Emlyn Scott and Jeremy Liddle, who both experienced the frustration of capital raising first hand.

CapitalPitch is now backed by an elite group of investors, including some of Australia’s best Family Offices, who believe in CapitalPitch and the united desire to solve the capital raising problem for early stage businesses and investors.

Is CapitalPitch a crowdfunding platform?

No. CapitalPitch is a provider of capital raising software designed to make your life easier. We also operate a venture capital fund that invests in startups in Australia, so as professional investors we know what startups should provide.

Is CapitalPitch regulated by ASIC?

Yes. CapitalPitch is regulated by ASIC. CapitalPitch is a Corporate Authorised Representative of Mejority Securities Pty Ltd ABN 61 608 667 778 who is the holder of and Australian Financial Services License (#485760).

You can read our Disclaimer here.

Does CapitalPitch invest in the startups as well?

Yes. We run a tax-free ESVCLP venture capital fund for investors who want a more hands-off approach, diversification and access to the very best opportunities.

You can learn more here.

Is my data private and secure?

Yes, absolutely. Our site uses HTTPS, which is encrypted by Transport Layer Security (TLS).Our site is hosted on Amazon’s AWS servers. No investor can access your sensitive information such as your data room without your permission.

CapitalPitch will not share your information with third parties other than to finalise transactions and ensure our website operates efficiently, or where you expressly agree to us doing so.

What is your complaints procedure?

If you are not completely happy with the service we have provided, you can register a complaint online or by phone. We obviously want to do whatever we can to sort the issue. To submit a complaint, please choose from the following options:

How can I request new features?

We love to hear your ideas. You can see our development roadmap here.

Please either email us or use our contact form:

Can I speak to someone at CapitalPitch?

Of course. There are several ways you can communicate with us. However, please do check out the FAQ sections as we find that most of the questions we get asked you can find the answers quickly here, and also we can progress to more detailed questions more quickly. The best ways to connect with us are:

Why do you have an end-to-end process?

It is critical that startups execute a capital raise correctly. We have designed the process to efficiently and effectively curate a startup from the moment they are thinking of raising capital right through to closing their round.

Startups all too often are simply not investor-ready and investors are inundated with deals and the vast majority are subpar. The average VC will only invest in 0.5% of the deals they see and angels around 2.5%.

Startups need to stand out and present themselves properly. Investors want to see better deal flow. We created the end-to-end process to solve these problems.

Startup FAQs

Who should join CapitalPitch?

Any private (not listed) business looking to find future investors, raise capital or nurture their existing investors.

How long does the process take?

You can have your profile completed in under 20 minutes and start networking with matching investors straight away.

The longer you can network and nurture investors prior to actually raising the better. That way you’ve built rapport with them over time and they’ll be more comfortable to invest.

The raise process timeline is completely up to you and your investors. We set no limits.

What type of investors are on CapitalPitch?

CapitalPitch’s platform is restricted to sophisticated/accredited investors only. Retail investors are not permitted to use the platform.

We categorise investors into:

  • Individual Investors – Angels, Advisors, others
  • Organisations – Angel groups, Corporation, Family Offices, Financial Institutions, VCs, Private Equity, Corporate Advisors, others

When can I show investors my pitch?

Startups can start showing their pitch to investors the moment they register on our platform. Each pitch has a unique URL which you can share with investors, colleagues etc.

Once you have added basic details on your business you will see matching investors and be able to start adding them to you pipeline and networking.

How much capital can I raise on CapitalPitch?

We set no minimums or maximums. We do however ask you to state your minimum and maximum raise targets so investors know what you’re trying to raise.

Can I raise more than the minimum target?

Yes absolutely. This is called overfunding. You set a minimum and maximum target on the platform. We suggest that if you have raised more than your maximum target that you consider closing your raise and reducing investors back to your maximum target, however this is entirely up to you and your investors.

How long do I have to raise my minimum target?

We set no defined time on your capital raise. We provide you with the software to help you successfully raise (including investor introductions). However, the best raises are usually done fairly quickly as you will lose momentum and investors may walk away. Preparation prior to formally raising is the key.

Do investors have to join CapitalPitch to partake in your raise?

No, not at all. We provide you with the software to manage your raise. Think of us as the hub of your capital raise where you record everything. Investor interest can be lodged on the platform by the investor OR you can record their interest manually via your admin.

Of course we’d prefer that all investors in a round register on the platform and record their interest that way, because then they can take advantage of all the due diligence and investor relations tools we provide.

Can I raise from investors outside Australia?

Yes. While CapitalPitch is restricted to sophisticated/accredited investors only, this is not country specific. Each country has a different set of requirements that determines the status as a sophisticated/accredited investor. Their country of residence (the one in which they pay taxes) determines their investor eligibility.

For example, in Australia Section 708 of the Corporations Act defines a sophisticated investor as having annual income of $250,000 for the last two years or a net worth of at least $2,500,000 in order to invest in early stage companies. For US residents it’s $200,000 and $1 million (not including your primary residence).

When an investor joins CapitalPitch they will be asked to self-certify that they meet the sophisticated/accredited status of their country of residence. This will however only allow them to use the CapitalPitch platform. When they actually invest they will be required to more fully prove their eligibility via the deal lawyers.

Can I update my pitch after launch?

Yes. You should be regularly updating information such as your traction, executive summary and data room. In fact, we actively encourage you to keep your traction (milestones, press and key customers) regularly updated.

Do transactions and investments actually occur on CapitalPitch?

No. CapitalPitch offers you all-in-one capital raising software to make your life easier by enabling you to manage your entire raise from investor sourcing through to closing, which derisks and destresses the capital raising process. We do this via our all-in-one capital raising software.

The actual transaction of wiring investment money does not occur on CapitalPitch. This occurs offline directly between the investor and the startup, with the help of the lawyers.

Can non-Australian startups use CapitalPitch?

Yes. However, at this stage we only support the “$” currency and english.

Does CapitalPitch offer marketing support?

We provide education, strategy and resources to startups to help them with their investor marketing. We also market you to our large investor database.

However, while we like to open investor doors for you and spread the word, the responsibility for marketing your raise remains with you and we don’t provide hands on support.

How are the deal terms negotiated?

CapitalPitch does not provide legal advice. We expect each startup to produce their own deal terms and documentation, and negotiate these with their investors directly.

Should I get investors to sign an NDA?

That is entirely up to you. However, as we are also a VC firm we can give you our view. We will never sign an NDA at an early stage with a startup for several reasons:

  • It wastes our time and money with lawyers
  • We see so many deals that we will never remember which startups we have NDAs with (and the different terms)
  • We are busy building our own business and have no interest in copying your business
  • It reflects a distrustful relationship between the startup and us which is not how we like to operate

If a startup we are speaking with just can’t get past the requirement for an NDA then our Fund will just pass and move on. Of course we’ll wish the startup well in their capital raising and future.

That being said, if the startup has past the initial screening and we are keen to invest (i.e. we have issued and agreed a term sheet) and are requesting access to their data room, then we are OK to sign an NDA.

Investor FAQs

Which investors can use CapitalPitch?

CapitalPitch is restricted to sophisticated/accredited investors only. Investors from all over the world can invest though each country has a different set of requirements that determines the status as a sophisticated/accredited investor. Your country of residence (the one in which you pay taxes) determines your investor eligibility.

Retail investors are not permitted to use the platform. Investors must be 18 years or over.

All types of investors are welcome on the CapitalPitch platform:

  •  Individual Investors – Angels, Advisors, others
  •  Organisations – Angel groups, Corporation, Family Offices, Financial Institutions, VCs, Private Equity, Corporate Advisors, others

Is CapitalPitch free for investors?

Yes. Startups pay a small monthly fee to use the software.

What are the risks of investing in a startup?

Investing in early stage securities is high risk. Investors wishing to invest in this asset class should take the time to understand the risks and have a strategy in place for mitigating those risks. We encourage all investors to have a diversified portfolio. Before using CapitalPitch, please ensure you read and understand our Disclaimer.

Do I own shares in the business directly or via a fund?

Your ownership is direct and will be in whatever format you want. That may be directly, via a holding trust or via an organisation you work for such as a VC fund.

We have a Fund that offers investors a tax-free diversified managed way of investing in the very best startups.

If you invest directly you will need to sign legal documents and be issued shares in the business and appear on the share register. If you invest via our fund we will handle everything. We will also offer you exclusive access to invest directly to increase your investment amount in your favourite opportunities.

Why should I invest in startups?

We wrote a blog post that describes 8 reasons why you should consider investing in startups.

You can read it here: What are the 8 reasons you should consider startup investing. It covers the following eight reasons:

  1. High average returns
  2. Potential for outsized returns
  3. Improved portfolio performance via diversification
  4. Tax breaks
  5. Legal insider information
  6. Affect life changing solutions
  7. Job creation
  8. Be involved

Can I see a startup before it is “Raising”?

Yes. We want founders and investors to connect a long time prior to raising to build up rapport and mutual trust. Once a startup moves from nurturing investors to raising they will notify you. Of course you are always able to speak to the startup and discuss you desire to invest at any time.

Do investors have to join CapitalPitch to invest in the startup?

No, not at all. We provide you with the software to manage your raise. Think of us as the hub of your capital raise where you record everything. Investor interest can be lodged on the platform by the investor OR you can record their interest manually via your admin.

Of course we’d prefer that all investors in a round register on the platform and record their interest that way, because then they can take advantage of all the due diligence and investor relations tools we provide.

Is my profile public?

An investor’s profile can be Public or Private.

A Public profile is visible to matching startups and they can notify you that they would like to connect.

A Private profile will not show up on any startup matching, but will still be visible to those with the direct URL or when you request access to a startup’s data room.

Can I speak directly to the startup?

Yes of course. We want you to communicate with the startups. We have provided you with the ability to communicate via the platform or contact the startups directly.

Does self-certification on CapitalPitch mean I have proven my sophisticated status?

Only investors that have self-certified can access the offer information on CapitalPitch. When you first register, you’re required to self-certify as a sophisticated/accredited investor or professional. You can also verify your status in the Settings section.

However, self-certification does not mean you have fully proven you are a sophisticated/accredited investor. If you invest in a startup you will likely be required to confirm your status with the intermediary lawyers.

Is CapitalPitch’s process a type of due diligence process?

Yes, CapitalPitch’s process is designed (amongst other things) to get a startup to provide clearly all the information an investor needs to make an informed decision. It also enables investors to conduct due diligence in an efficient and effective manner.

What sort of businesses use CapitalPitch?

Any private (not listed) business looking to find future investors, raise capital or nurture their existing investors.

Does CapitalPitch do due diligence on startups using the software?

No. We provide software that enables businesses to present themselves more professionally to investors and manage their entire raise from investor sourcing through to closing. The validity of the information they present is up to investors to check. Our process is designed to make this easier, quicker and more effective for investors to do. 

Is there a minimum or maximum amount I can invest?

There is a minimum amount set by the startup on each pitch. This is no maximum limit.

However, even though their is no upper limit we recommend you allocate your startup investment funds across a broad range of startups for diversification to reduce your risk.

Does CapitalPitch collect investor commitments on behalf of the startup?

No. The actual transaction of wiring investment money does not occur on CapitalPitch. This occurs offline directly between the investor and the startup, with the help of the lawyers.

What happens when I click “I’m Interested” to a pitch?

The “I’m Interested” button signifies to a startup that you are curious and would like to learn more and would like access to their data room and due diligence information.

When you click “I’m Interested” you will be required to enter in an amount you may wish to invest and your phone number so the startup can contact you if they would like. The startup is notified that you’d like access to their data room and due diligence information. Startups can view your profile, contact you and decide whether to grant you access or not.

Startups may require you sign an NDA at this stage.

If I indicate interest in a pitch by the “I’m Interested” button am I committed?

No, you are not committed. Registering interest notifies the startup that you are seriously interested in investing and that you’d like to communicate and see their data room.

Committing to invest occurs outside the platform bilaterally between the investor and the startup, with the help of the intermediary lawyers.

What happens when the minimum and maximum raise targets are reached?

When the minimum target amount is reached the startup may wish to close their raise or keep raising.

When the maximum target amount is reached the startup has reached the upper limit of their target raise and may close their raise, complete paperwork, collect funds and close their round. However, the startup may keep on raising and ratchet back investors to their raise maximum.

It should be noted that even though a raise may have hit its target on the platform it does not mean that those funds are committed. They are only reserved amounts and commitments still have to be met between the startup, investors and the intermediary lawyers. Investment documents need to be agreed and signed. This means that certain reserved amounts may not convert into committed investments, and will have to be removed from the reserved amount on the platform.

Can I cancel my investment?

Your reservation via the “I’m Interested” button is non-binding and an indication to the startup that you are seriously considering investing. It is more of a show of interest. The commitment comes later when you sign term sheets, do due diligence and sign subscription agreements (or the equivalent). At that time you may also need to formally prove your sophisticated/accredited status.

Will CapitalPitch publish my investment amount?

No. We never disclose how much money you have invested in a pitch.

We show you how much you have invested in your dashboard, but this is private to each investor.

Can I become a Board member or adviser to the startup I invest in?

Yes, but that is entirely up to you and the startup. One of the reasons we restrict CapitalPitch to sophisticated/accredited investors and professionals is because of the value they can bring beyond just money.

Can I use my own lawyers?

Yes. You are of course free to consult your own lawyers (and advisors).

How will the startup communicate with me after I invest?

Giving investors regular updates is apart of good corporate governance. Once an investment raise is complete, we hope each startup will keep their investors regularly updated on the performance of the business. We provide startups and investors with tools to do this.

When and where is my investment money paid?

The actual transaction of wiring investment money does not occur on CapitalPitch. This occurs offline directly between the investor and the startup, with the help of the lawyers.

Can foreign investors use CapitalPitch?

Yes. While CapitalPitch is restricted to sophisticated/accredited investors only, each country has a different set of requirements that determines the status as a sophisticated/accredited investor. Your country of residence (the one in which you pay taxes) determines your investor eligibility.

For example, in Australia Section 708 of the Corporations Act defines a sophisticated investor as having annual income of $250,000 for the last two years or a net worth of at least $2,500,000 in order to invest in early stage companies. For US residents, it’s $200,000 and $1 million (not including your primary residence).

When you join CapitalPitch as an investor, you will be asked to self-certify that you meet the sophisticated/accredited status of your country of residence. This will however only allow you to use the CapitalPitch platform. When you actually invest, you will be required to more fully prove your eligibility via the deal lawyers.